India opens multibillion-dollar 3G auction

New Delhi - India on Friday began the auction of the radio frequency spectrum for third-generation (3G) telephony with major cellular phone firms bidding for providing services in the booming telecommunications market, officials said.

Top players like Bharti Airtel Ltd and Reliance Communications Ltd were bidding for airwaves in the sale for 22 service areas across the country.

Senior officials at the Department of Telecommunications confirmed that the auction had begun but said it could take weeks to complete.

"It may take a week or a couple of weeks or even more," an official who requested anonymity said. "It is a step-by-step process. There is no deadline or time limit for closing of the auction."

The auction of the 3G airwaves and broadband wireless access (BWA) spectrum could fetch the government 350 billion to 500 billion rupees (7.9 billion to 11.2 billion dollars). Nine companies are bidding.

Third-generation telecommunications services allow faster connectivity than second-generation, or 2G, service and enable applications like internet TV, video on demand, audiovideo calls and high-speed data exchange.

The auction for the BWA spectrum is to be conducted two days after the close of the 3G auction, local media reports said.

The winners are to be awarded spectrum only in September, which means the commercial operations would begin only by the end of 2010 or early 2011.

Source: Earth Times.
Link: http://www.earthtimes.org/articles/show/317832,india-opens-multibillion-dollar-3g-auction.html.